Deficiency in Service (Builders Failure to Obtain Occupation Certificate) Under Consumer Protection Act: Supreme Court of India
Case: Samruddhi Co-operative Housing Society Ltd. vs Mumbai Mahalaxmi Construction Pvt. Ltd.
Coram: Justices DY Chandrachud and AS Bopanna
Case no: CA 4000 of 2019
Court Observation: “It is evident that there was an obligation on the respondent to provide the occupancy certificate and pay for the relevant charges till the certificate has been provided. The respondent has time and again failed to provide the occupancy certificate to the appellant society. For this reason, a complaint was instituted in 1998 by the appellant against the respondent. The NCDRC on 20 August 2014 directed the respondent to obtain the certificate within a period of four months. Further, the NCDRC also imposed a penalty for any delay in obtaining the occupancy certificate beyond these 4 months.
Section 2(1)(d) of the Consumer Protection Act defines a ‘consumer’ as a person that avails of any service for a consideration. A ‘deficiency’ is defined under Section 2(1)(g) as the shortcoming or inadequacy in the quality of service PART D 17 that is required to be maintained by law.
“In the present case, the respondent was responsible for transferring the title to the flats to the society along with the occupancy certificate. The failure of the respondent to obtain the occupation certificate is a deficiency in service for which the respondent is liable. Thus, the members of the appellant society are well within their rights as ‘consumers’ to pray for compensation as a recompense for the consequent liability (such as payment of higher taxes and water charges by the owners) arising from the lack of an occupancy certificate”
Keywords: Builders Failure To Obtain occupation certificate, Builders Failure To Obtain
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